diff --git a/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/ASTFailedTests.java b/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/ASTFailedTests.java
index 6cb6980fc1e..b1ff8608e58 100644
--- a/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/ASTFailedTests.java
+++ b/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/ASTFailedTests.java
@@ -87,18 +87,6 @@ public class ASTFailedTests extends BaseASTTest
         assertCodeFailsParse("register int *foo asm (\"a5\");");
     }
 
-    public void testBug39701A() throws Exception
-    {
-        assertCodeFailsParse("extern template int max (int, int);");
-    }
-    public void testBug39701B() throws Exception
-    {
-        assertCodeFailsParse("inline template class Foo<int>;");
-    }
-    public void testBug39701C() throws Exception
-    {
-        assertCodeFailsParse("static template class Foo<int>;");
-    }
     public void testBug39702() throws Exception
     {
         Writer code = new StringWriter();
diff --git a/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/FailedCompleteParseASTTest.java b/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/FailedCompleteParseASTTest.java
index b68f3c78cba..c64fd5e90fc 100644
--- a/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/FailedCompleteParseASTTest.java
+++ b/core/org.eclipse.cdt.core.tests/failures/org/eclipse/cdt/core/parser/failedTests/FailedCompleteParseASTTest.java
@@ -160,17 +160,4 @@ public class FailedCompleteParseASTTest extends CompleteParseBaseTest
 	}
 	
 	
-	public void testGNUExternalTemplate_bug71603() throws Exception {
-		try {
-			parse("template <typename T> \n class A {}; \n extern template class A<int>; \n"); //$NON-NLS-1$
-			fail();
-		} catch (ParserException e) {
-			assertTrue( e.getMessage().equals( "FAILURE" ) ); //$NON-NLS-1$
-		}
-//		Iterator i = parse("template <typename T> \n class A {}; \n extern template class A<int>; \n").getDeclarations();
-//		IASTTemplateDeclaration td = (IASTTemplateDeclaration) i.next();
-//		IASTClassSpecifier cs = (IASTClassSpecifier) td.getOwnedDeclaration();
-//		IASTTemplateInstantiation ti = (IASTTemplateInstantiation) i.next();
-//		assertFalse(i.hasNext());
-	}
 }
diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCCompleteParseExtensionsTest.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCCompleteParseExtensionsTest.java
index cd1348462ca..b41848e8337 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCCompleteParseExtensionsTest.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCCompleteParseExtensionsTest.java
@@ -18,9 +18,12 @@ import org.eclipse.cdt.core.parser.ParserLanguage;
 import org.eclipse.cdt.core.parser.ast.ASTPointerOperator;
 import org.eclipse.cdt.core.parser.ast.ASTUtil;
 import org.eclipse.cdt.core.parser.ast.IASTASMDefinition;
+import org.eclipse.cdt.core.parser.ast.IASTClassSpecifier;
 import org.eclipse.cdt.core.parser.ast.IASTExpression;
 import org.eclipse.cdt.core.parser.ast.IASTFunction;
 import org.eclipse.cdt.core.parser.ast.IASTSimpleTypeSpecifier;
+import org.eclipse.cdt.core.parser.ast.IASTTemplateDeclaration;
+import org.eclipse.cdt.core.parser.ast.IASTTemplateInstantiation;
 import org.eclipse.cdt.core.parser.ast.IASTTypedefDeclaration;
 import org.eclipse.cdt.core.parser.ast.IASTVariable;
 import org.eclipse.cdt.core.parser.ast.gcc.IASTGCCExpression;
@@ -235,4 +238,13 @@ public class GCCCompleteParseExtensionsTest extends CompleteParseBaseTest {
         
         parse( writer.toString(), true, ParserLanguage.C );
     }
+    
+	public void testGNUExternalTemplate_bug71603() throws Exception {
+		Iterator i = parse("template <typename T> \n class A {}; \n extern template class A<int>; \n").getDeclarations(); //$NON-NLS-1$
+		IASTTemplateDeclaration td = (IASTTemplateDeclaration) i.next();
+		IASTClassSpecifier cs = (IASTClassSpecifier) td.getOwnedDeclaration();
+		IASTTemplateInstantiation ti = (IASTTemplateInstantiation) i.next();
+		assertFalse(i.hasNext());
+	}
+
 }
diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCQuickParseExtensionsTest.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCQuickParseExtensionsTest.java
index c375d4963d9..c8e4a096229 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCQuickParseExtensionsTest.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/GCCQuickParseExtensionsTest.java
@@ -150,4 +150,17 @@ public class GCCQuickParseExtensionsTest extends BaseASTTest {
         writer.write( "else z = - y;\n" );//$NON-NLS-1$
         writer.write( "z; }) zoot;\n" );//$NON-NLS-1$
     }
+    
+    public void testBug39701A() throws Exception
+    {
+    	parse("extern template int max (int, int);"); //$NON-NLS-1$
+    }
+    public void testBug39701B() throws Exception
+    {
+    	parse("inline template class Foo<int>;"); //$NON-NLS-1$
+    }
+    public void testBug39701C() throws Exception
+    {
+        parse("static template class Foo<int>;"); //$NON-NLS-1$
+    }
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/core/parser/extension/IParserExtension.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/core/parser/extension/IParserExtension.java
index e8d29102fa1..80d2ef518dd 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/core/parser/extension/IParserExtension.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/core/parser/extension/IParserExtension.java
@@ -76,4 +76,8 @@ public interface IParserExtension {
 	 * @return
 	 */
 	public Kind getExpressionKindForStatement();
+	
+	public boolean supportsExtendedTemplateInstantiationSyntax();
+	
+	public boolean isValidModifierForInstantiation( IToken la );
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/GCCParserExtension.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/GCCParserExtension.java
index 5839218aed7..2360a8b5afb 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/GCCParserExtension.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/GCCParserExtension.java
@@ -463,4 +463,27 @@ public class GCCParserExtension implements IParserExtension {
 		return IASTGCCExpression.Kind.STATEMENT_EXPRESSION;
 	}
 
+	/* (non-Javadoc)
+	 * @see org.eclipse.cdt.core.parser.extension.IParserExtension#supportsExtendedTemplateInstantiationSyntax()
+	 */
+	public boolean supportsExtendedTemplateInstantiationSyntax() {
+		return true;
+	}
+
+	/* (non-Javadoc)
+	 * @see org.eclipse.cdt.core.parser.extension.IParserExtension#isValidModifierForInstantiation(org.eclipse.cdt.core.parser.IToken)
+	 */
+	public boolean isValidModifierForInstantiation(IToken la) {
+		if( la == null ) return false;
+		switch( la.getType() )
+		{
+			case IToken.t_static:
+			case IToken.t_inline:
+			case IToken.t_extern: 
+				return true;
+			default:
+				return false;
+		}
+	}
+
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/Parser.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/Parser.java
index 8e2a32fd929..1aa5ae37d37 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/Parser.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/Parser.java
@@ -3346,7 +3346,15 @@ public class Parser implements IParserData, IParser
             consume(IToken.t_template);
         }
         else
-            firstToken = consume(IToken.t_template);
+        {
+        	if( extension.supportsExtendedTemplateInstantiationSyntax() && extension.isValidModifierForInstantiation(LA(1)))
+        	{
+        		firstToken = consume(); // consume the modifier
+        		consume( IToken.t_template );
+        	}
+        	else
+        		firstToken = consume(IToken.t_template);
+        }
         if (LT(1) != IToken.tLT)
         {
             // explicit-instantiation
@@ -3721,7 +3729,10 @@ public class Parser implements IParserData, IParser
                     break;
                 }
             default :
-                resultDeclaration = simpleDeclarationStrategyUnion(scope, ownerTemplate, overideKind, overideKey);
+            	if( extension.supportsExtendedTemplateInstantiationSyntax() && extension.isValidModifierForInstantiation(LA(1)) && LT(2) == IToken.t_template )
+            		resultDeclaration = templateDeclaration(scope);
+            	else
+            		resultDeclaration = simpleDeclarationStrategyUnion(scope, ownerTemplate, overideKind, overideKey);
         }
     	setCompletionValues(scope, kind, KeywordSetKey.DECLARATION );
     	endDeclaration( resultDeclaration );